Tax revenue drop puzzling
Published 11:22 pm Tuesday, May 19, 2009
NATCHEZ — A 16.19 percent decrease in sales tax revenue from March 2008 to March 2009 has left city officials scratching their heads.
City Clerk Donnie Holloway said the March sales tax revenue — $455,321 — was an 8.59 percent increase from February.
The numbers were released this month.
Sales tax revenue was down slightly in December and January, but it picked back up with an 8.59 percent increase in February.
And Tourism Director Connie Taunton said tax revenue from tourism was good for March.
Compared to March 2008, Taunton said collections from the 3 percent hotel tax and the 1.5 restaurant tax this March were only down $806.
The hotels tax collection is up 13 percent from last year, she said.
However, the restaurant collections were down by 11 percent.
Holloway said he is investigating the 16 percent drop for March.
Because it was such a big drop, Holloway contacted the state tax commission to see if there were any errors.
Holloway gathered from the commission that the 16 percent drop is due partly to low car sales this year.
He also believes the 2008 numbers were high because several late February filings rolled into the March 2008 numbers.
Taunton said she believes it could be some late filing by business owners.
“Sometimes we have late filers,” she said. “(March collections) may be in the June or July tax reports.”
Taunton said she’s not “too alarmed” by the drop in tax revenue that was reported this month, and that it will more than likely come out in the next two tax collections.
She said tax revenue this year has been better than what she expected.
“Considering the economy, I think we’re holding our own pretty good,” Taunton said. “We were pretty nervous and scared about how the Pilgrimage season might turn out this year, but all in all, we fared it pretty well.”